Apple Looks Finished

Tech giant Apple (AAPL) is mainly known for its iPhone, as it introduced an amazing line up of iPhones till its iPhone 6/6 Plus. But now it looks like Apple iPhone sales have peaked, as the company’s iPhone worldwide sales declined considerably from 74.78 million last year to 51.19 million this year. Apple’s iPhone 6S/6S Plus did not meet public expectation as there were no significant changes except 3D Touch as compared to iPhone 6/6 Plus. Moreover, the company expects iPhone sales to decline further in the next quarter.

On the other hand, as per a recent report from Consumer Intelligence Research Partners (CIRP), amid buyers of new iPhone in the U.S. who formerly owns an old iPhone, the age of the phone being retired has gradually surged.

At present, approximately 50 percent of iPhones are 1 or 2 year old equated to 66 percent in June 2013.

Moreover, the percentage of iPhones that are more than 3 years old has reached 12 percent, an increment of 7 percent compared to that in June 2013.

Whereas Apple’s iPhone sales are declining quarter after quarter, its foremost rival Samsung is hitting home runs. Samsung Galaxy S series has played a significant role in achieving amazing profit. Samsung recently launched its latest flagship smartphone Galaxy S7 and Galaxy S7 Edge which comprise huge improvements compared to its predecessors Galaxy S6 and Galaxy S6 Edge. In comparison with Apple, Samsung is making smart moves, and has forced old Samsung users to buy new flagship phones. According to t3.com, Samsung’s Galaxy S7 has become the best smartphone available worldwide.

Apart from this, Apple is on its way to introduce its new iPhone 7, but it is highly likely that the company will have the same design as that of its predecessor iPhones, and may not be able to force old iPhone users to buy iPhone 7. One more significant thing to keep in mind is that Samsung is also offering a Gear VR headset along with Galaxy S7/S7 Edge to relish virtual reality based videos and games.

Conclusion

Apple will really need to wow investors with the iPhone 7 if it wants to curb the falling sales trend. Investors won’t shell out hundreds of dollars to buy an iPhone that offers hardly any upgrades. Meanwhile, it seems like Samsung has already made things hard for Apple by launching a stellar phone. With smartphone growth slowing down, the chances of the iPhone 7 being a bigger success than the 6S are slim.